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Enterprises with foreign-owned capital (even one per cent) need to register distribution rights before trading goods purchased from other Vietnamese organisations or imported into the country.Distribution is deemed one of the toughest rights to register among those related to goods purchase and sales activities, and FDI enterprises incur losses if they are not allowed to trade goods in Viet Nam.PLF Law Firm shares some insights on how FDI enterprises can deal with this obstacle.Benefits of distribution rightUndertaking registration for distribution right permits FDI enterprises to conduct activities related to wholesale, retail, purchase and sale agency, as well as commercial franchises.Enterprises with 100 per cent Vietnamese capital have this right by default. Enterprises with foreign-owned capital (even one per cent) must register the distribution right as stipulated in Article 5 of Circular No. 08/2013/TT-BCT, dated April 22, 2013 (Circular 08).Are FDI enterprises with registered … [Read more...] about Advice for FDI firms on distribution rights

VietNamNet Bridge - Vietnam’s economic growth is still heavily dependent on foreign invested enterprises (FIEs), especially conglomerates.
According to a report from the General Statistics Office (GSO), in July, Vietnam exported $17.5 billion, a decrease of 1.7 percent compared with the month before. Of this amount, Vietnamese enterprises exported $4.9 billion, and FIEs $12.6 billion.
Compared with exports of the same period last year, Vietnam’s export turnover increased by 17.9 percent, including 13.1 percent from Vietnamese enterprises and 19.9 percent from FIEs.
As such, in the first seven months of 2017, the total export turnover reached $115.2 billion, up by 18.7 percent in comparison with the same period last year.
While Vietnamese enterprises exported $32.2 billion worth of products, FIEs exported $83 billion.
Vu Hong Thanh, chair of the National Assembly’s Economics Committee, said he can see problems as economic growth depends on external … [Read more...] about Vietnam economic future uncertain as it still relies on FDI: experts

Despite having fallen to the fourth position in terms of foreign direct investment in the first eight months of 2017, the real estate sector remains the second-biggest recipient of this type of investment to date.
Though realty is fourth in FDI for eight months, it remains the second-largest earner overall
According to the Ministry of Planning and Investment’s Foreign Investment Agency, between January and August 20, the real estate sector stood in fourth with regards to foreign direct investment (FDI) inflows – with 46 newly-registered projects and 15 others increasing their capital, totalling more than $1.16 billion.
Real estate FDI is behind the sectors of manufacturing and processing ($11.69 billion), power processing and distribution ($5.36 billion), and mining ($1.28 billion).
Cumulatively, as of August 20, investment capital in the real estate sector remained firm in the second-highest … [Read more...] about Real estate remains 2nd largest FDI lurer in VN

In the first eight months of the year Vietnam attracted foreign investment worth more than US$23.36 billion, a year-on-year increase of 45.1 per cent.
Though it was rightly hailed by all, the Ministry of Planning and Investment (MPI) in a recent report listed several shortcomings, one of which was the rapid increase in the number of projects with very little capital.
In fact, the number of projects with capital of below $1 million accounted for 65 per cent of all projects during this period.
The average size was $3.8 million, rather modest according to experts.
Experts have been warning for a long time that foreign-owned projects are getting smaller, but the issue has not been addressed so far.
For instance, last year the Mekong Delta province of An Giang attracted only one foreign project and it was worth all of $20,000.
Similar sized projects have been seen even in major cities like Hanoi, Da … [Read more...] about Shrinking FDI firms a concern for Vietnam

Several foreign players are entering the market this year, mostly in cooperation with major retailers they already work with in other markets, according to Julien Brun, managing partner of CEL Consulting.For example, major French retailer AuChan, already very successful in the EU, Russia, and China, brought in FM logistics, a French third-party logistics firm that serves the company globally.According to CEL Consulting, the wave of investment and expansion in the logistics business in Vietnam has just started. Customers are becoming more mature and demanding as the retail market grows, and competition is changing from being price-driven to more solutions-driven – with the advantage going to firms that can offer more integrated services.Legislation is slated to favour foreign direct investment (FDI) in logistics, and the volume of business has started to become more interesting to major players, which justifies investment in transport or construction.In light of this trend, … [Read more...] about Logistics FDI rises in the face of retail expansion

VietNamNet Bridge - Vietnam is determined not to sacrifice the environment in exchange for foreign direct investment (FDI). A national strategy on green growth aims to improve efficiency in using natural resources and protecting biodiversity and ecosystems. To date, Vietnam has gained encouraging achievements in this field. Nguyen Mai, an expert in FDI, now chair of the Vietnam Association of Foreign Invested Enterprises (VAFIEs), cited a report by The Financial Times in July 2015 as saying that with an 8.14 score, Vietnam is leading emerging markets in terms of attracting FDI for green growth. Vietnam is determined not to sacrifice the environment in exchange for foreign direct investment
However, big problems still exist. Mai, in his article published in a local newspaper, pointed out that though the energy consumption ratio of one percent of GDP growth rate has decreased from 2.1 in the early 2000s to 1.3, it is still much higher than the requirements needed by a green economy. … [Read more...] about The green economy needs the right kind of FDI: gov’t

At last week’s workshop to seek comments for the draft decree replacing Decree No.73/2012/ND-CP on foreign investment and cooperation in education, the Ministry of Education and Training (MoET) said that the draft decree has many positive changes, including the removal of the prescribed ratio of Vietnamese to foreign students and the requirement that schools mus own land. “For example, Article 29.5 states that foreign-invested education institutions may be allowed to lease stable property for a term of at least five years, while Decree 73 demands that they own land,” Nguyen Xuan Vang, director general of MoET’s International Cooperation Department, told VIR. Regardless of these changes, foreign investors in education in Vietnam still complained about many problems that remain unresolved in the draft. One of the hot-button issues on the agenda was the mandated verification of educational conditions. Like Decree 73, the draft decree also requires the verification … [Read more...] about Education FDI regulations still lagging

According to Savills Vietnam, the increase in FDI in the manufacturing sector has prompted investors to pour money into projects to develop industrial infrastructure.
Thai company Hemaraj Land & Development and Vietnamese firm Cienco 4 last May confirmed cooperation to set up a joint venture to develop an IZ on an area of 3,200 hectares in Nghe An province, capitalized at US$1 billion.
Many deals were made in the first half of the year. Japanese firm Nishi Nippon and Hankyu joined forces with Vietnamese firm Nam Long to develop Mizuki Park residential quarter on an area of 26 hectares in Binh Chanh district, HCMC, capitalized at US$351 million.
Meanwhile, Aeon Mall has teamed up with BIM Group to develop Aeon’s second shopping mall in Hanoi, covering an area of 16.7 hectares in a US$200 million project.
Son Kim Lan has successfully … [Read more...] about FDI flow into real estate: a cause for concern?

About 28.24 billion USD in foreign direct investment (FDI) was poured into Vietnam between January and October, up 37.4 percent year on year, said the Foreign Investment Agency under the Ministry of Planning and Investment.
An electronic product manufacturing line of the Republic of Korea-invested LG Electronics Vietnam
The sum included capital registered for new and existing projects and capital for buying stakes and contributing to charter capital of existing companies.
As of October 20, FDI projects had disbursed 14.2 billion USD, 11.8 percent more than in the same period last year.
[Infographics: Sectors attract the most FDI in the first 9 months of 2017]
With 7.62 billion USD, the Republic of Korea is the biggest among the 112 countries and territories investing in Vietnam, making up 27 percent of total FDI.
It is followed by Japan, which invested 6.07 billion USD, or 21.5 percent of total FDI, according to the Foreign Investment Agency.-VNA … [Read more...] about Ten-month FDI grows 37 percent to $28 billion

The plant will produce garment and textile materials at the 660 hectare Texhong Hai Ha Industrial Park. Its investment capital is expected to be in the hundreds of millions of dollars. The firm’s representatives have come to Quang Ninh several times.It is also expected that Toray’s representatives will come to the central city of Danang to attend the APEC Economic Leaders’ Week during November 5-11 – slated to attract about 10,000 delegates and leading businesses from around the region and the world.Japanese Ambassador to Vietnam Umeda Kunio said that like Toray many Japanese firms are expected to come to Vietnam from now until the year’s end in search of investment and business opportunities.“Under a Japan External Trade Organization survey conducted in 2016, among investment questions about Japan’s investment into Vietnam were the most [in number]. This shows that Japanese firms’ interest in doing business in Vietnam continues to be … [Read more...] about Tariff cuts are bolstering FDI from APEC members